Bank Service Corporations (BSCs) are corporations or LLCs that are owned and controlled by one or more banks to perform services for banks and other depository institutions (including credit unions

• authorized by the Bank Service Company Act - 12 USC 1861

With certain exceptions, the banks that control the BSC must be located in the same state.

Services performed by the BSC must be performed at a location at which the banks could perform the services and must be of a type that the banks could perform themselves.

• Note, however, that BSCs may not take deposits.

Banks must apply to their primary federal regulator to form or acquire a BSC unless the BSC's services are limited to clerical and accounting services such as:

• check and deposit sorting and posting
• posting of interest and other credits and debits
• preparing and mailing checks, statements and notices.

With the approval of the FRB, BSCs may also provide services that were permissible for Bank Holding Companies under the Bank Holding Company Act (12 USC 1843(c)(8)) on November 11, 1999.